In Florida, homeowner groups surveyed by the Community Association Leadership Lobby complained that even some banks are failing to pay association fees after foreclosing on homes.

"The whole issue of foreclosures is dire and getting worse," says David Muller, a Sarasota lawyer who co-directed the survey. "It's causing the rest of the owners, who aren't delinquent, to pay even more money."

The "snowball effect" began, Muller says, as buyers, many of them speculative investors, started snapping up homes using subprime loans. As housing values plunged and mortgage bills ballooned, some buyers owed more on their mortgages than the homes were worth. So they stopped paying community association fees, then walked away.

In 13 states, banks or mortgage companies generally must pay at least a portion of the delinquent community fees when they foreclose. In other states, the association's only recourse may be to sue for unpaid fees, thereby racking up legal bills in what often turns out to be a futile pursuit of dollars owed.

"At one place in Florida we had seven (foreclosed) homes on one street," says Steven Brumfield, vice president of operations at Wentworth Property Management, which serves 950 community associations in more than a dozen states. "The association could not even afford to cut the grass, there were so many of them. They ended up with a street full of homes that looked horrible and wouldn't sell."

Eric Glazer, a property management lawyer in Florida, says he's had to deal with some banks that failed to pay association dues after taking over properties through foreclosure. "Just this morning, we found ourselves in court, and we got a default judgment against a bank," he said last week. "Words can't describe how bad the problem is here."

Karen Conlon, president of the California Association of Community Managers, estimates that her state's delinquency rate soared 1,000% over the past year. Fees at her condo association were raised 18.5% to account for a shortfall.

"We're seeing cutbacks," she says. "Instead of having flowers planted six times a year, it may be just two or three times."

Jim Hanley, president of Scottsdale-based Rossmar & Graham, says he's changed collection tactics with the 120,000 units his firm manages. Annual coupon books have been replaced with monthly billing statements, so homeowners can get constant reminders of what they owe. A database is now linked to an automated system that calls people once they're delinquent.

"Associations that are managed well aren't bulletproof," Hanley says. "But they're ahead of those that are going along on a shoestring."

Collecting monthly dues has become so problematic that at least one company is trying to capitalize by offering to take over the job. The company, Association Financial Services, based in Florida, says it guarantees 100% payment of residence fees.

In exchange, the company says it charges homeowner associations a fixed fee for each assessed housing unit. It also gets to pocket any late fees and other charges imposed on delinquent homeowners.

The threat is particularly severe for some smaller housing collectives. In Avondale, Miller says, about 120 homeowners in Los Arbolitos, out of 309 total, have fallen behind on payments. Volunteer board members had to scrimp to cover the deficit for landscaping, electricity and property management.

"We're cutting back on water, but we've got 17 acres of grass landscaping, and what about this summer?" he says.